Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, dry-bulk hauler Genco Shipping & Trading (NYSE: GNK ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Genco's business and see what CAPS investors are saying about the stock right now.
Genco facts
| Headquarters (founded) |
New York City (2004) |
| Market Cap |
$429.2 million |
| Industry |
Shipping |
| Trailing-12-Month Revenue |
$414.3 million |
| Management |
CEO Robert Buchanan (since 2005)
CFO John Wobensmith (since 2005)
|
| Return on Equity (average, past 3 years) |
18.4% |
| Cash/Debt |
$264.87 million / $1.79 billion |
| Competitors |
DryShips (Nasdaq: DRYS )
Eagle Bulk Shipping (Nasdaq: EGLE )
Excel Maritime (NYSE: EXM )
|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 97% of the 1,260 members who have rated Genco so far believe the stock will outperform the S&P 500 going forward. These bulls include billybob4148 and All-Star mattcguy.
Just last week, billybob4148 tapped Genco as a tasty turnaround pick: "This shipping company appears to be well positioned for the economic rebound. Lots of debt, sure, but lots of capacity too for making money. Seems like the stock is just getting hammered."
Currently, Genco even sports a particularly paltry price-to-operating cash flow ratio of 1.6, representing a discount to rivals DryShips (4.7), Eagle Bulk (2.8), and Excel (2.3), as well as Navios Maritime (NYSE: NM ) (3.0) and Euroseas (Nasdaq: ESEA ) (15.4).
CAPS All-Star mattcguy elaborates on the bargain opportunity:
[Genco] is an attractive long term investment. The market expectations for profit growth are very low right now, and I think with its low cost of borrowing, and the Panama Canal expansion, [Genco] has positioned itself to exceed those expectations. There is risk due to its leverage, but if the world economy does not enter into another economic downturn, [Genco] is very well positioned. This stock is a play on the growth of the world economy, and I think there is huge upside potential, with limited downside.
What do you think about Genco, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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